Remortgage Now or Wait

How does a  remortgage work and what do I need to consider before making a decision?

A remortgage is moving from one lender to another, and it needs to consider any potential early repayment charges, the current rates, and any fees involved such as legal fees and valuation fees. That way you can make an informed decision.

Is now a good time to remortgage or should I wait for better rates?

If your fixed rate is due to expire within the next six months, I would advise speaking to a broker and see what the rates currently are. No one is sure what rates will do – it may be that they continue to rise, they might drop or they could potentially stay the same.

It’s best to speak to a broker to see what we can obtain now, rather than waiting to see if rates are lower before completion. There may be an option to change the rate to another lender if rates do fall before your new deal starts.

What are the potential benefits of remortgaging now? 

It may be that you secure a lower rate rather than wait until the expiry date and then find out that rates have increased even more.

Are there any potential downsides to remortgaging at the moment?

You may have a higher rate than you would do in six or 12 months – but saying that, you also might get a lower rate if you remortgage early.

How would remortgaging now affect my monthly repayments?

Rates have increased quite significantly since most people last remortgaged. So it may mean an increase to your monthly payments. But that will still be better than going onto the lender’s standard variable rate, which is always the highest in the marketplace.

Can remortgaging save me money in the long run? If so, how?

Potentially, if the rate is lower than the future rate that might save you money. If it’s a higher rate then it might not. If you secure a lower rate now, that could potentially save you more money than waiting six months and then the rate being higher.

What factors should I consider when deciding whether to remortgage or wait? 

Speak to a broker, so you can make an informed decision about whether to remortgage or not. As a broker we can look at all the important aspects, such as the loan amount, interest rates and affordability. We can discuss everything with you to make an informed decision on whether it’s a good time or not.

Are there any additional costs or fees associated with remortgaging?

There are sometimes lenders’ arrangement fees, which are usually added to the mortgage. These are usually about £999 or £995 depending on the lender. Sometimes there are legal fees and sometimes valuation fees. It’s all dependent on the lender and the product.

How can I determine if I’m eligible for a remortgage? What criteria do lenders consider?

If your rate is due to expire within the next six months I would advise speaking to a broker to discuss the rates available. All lenders have different criteria around affordability. A broker can check everything to make sure you fit the criteria before applying to that lender.

What documents do I need to provide when applying for a remortgage?

You will need bank statements, payslips, P60s. If you’re self-employed you will need tax calculations and tax year overviews. You also need proof of ID and proof of address. 

If I decide to wait, what factors might cause interest rates to change in the future?

Key things are changes to inflation, changes to swap rates or a shift in the Bank of England base rate. These can all have an effect on the rates available.